SET-listed Banpu Plc, Thailand's largest coal producer, has launched a new subsidiary to offer solar rooftop power generation services to businesses to tap into rising domestic demand.
Chief executive Somruedee Chaimongkol said the wholly owned Banpu Infernergy Co (BPI) started operations yesterday with registered capital of 625 million baht.
She said the new company will be Banpu's midstream renewable business arm to supply solar rooftops to several businesses, including factories, oil and gas stations and offices.
The services provided comprise consultancy, engineering, procurement, construction, operation and maintenance.
BPI will operate an energy service company model, which is a commercial business providing a broad range of energy solutions, including design and implementation of energy savings projects, retrofitting, energy conservation, energy infrastructure outsourcing, power generation and energy supply.
"Our services could help our customers cut power costs by at least 10%, providing a return on investment within 7-9 years," said Ms Somruedee.
Term of payments for BPI vary from monthly payment, monthly instalments or deductions from power bills shared by clients and BPI.
BPI expects to have initial service orders of a combined 20 megawatts within the first year of operation, with the figure possibly rising shortly to 80MW and 300MW within 2023.
Ms Somruedee said although the energy policymaker has not yet finalised the rate that state utilities will pay for power, it will purchase power from clients who have their own solar rooftops, as demand for solar rooftop has already seen a strong rise.
The policymaker is expected to deregulate solar rooftop projects to allow building owners and households to have their own solar power systems by the end of this year, according to the incoming revision of the country's power development plan (PDP 2015-2036).
Once the PDP is officially revised, BPI's target will be revised upward to more than 300MW within 2023, as demand should rise after deregulation, Ms Somruedee said.
She said that in the long run, BPI is expected to help generate around 5-10% of Banpu's total revenue.
Meanwhile, Banpu, expects revenue this year to grow 20% from last year's US$2.26 billion (75 billion baht), thanks to rising global coal prices, which are expected to average $63 a tonne, up 20% from an average of $51.53 in 2016.
BANPU shares closed yesterday on the Stock Exchange of Thailand at 17.40 baht, up 20 satang, in trade worth 1.58 billion baht.